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Euro-Zone Currencies Are Expected
To Fall as ECB Rate Cut Is Likely

By

G. Thomas SimsDow Jones Newswires

Updated Nov. 20, 1998 12:01 a.m. ET

FRANKFURT -- As it becomes clearer that the European Central Bank will have to cut interest rates early in 1999, euro-zone currencies will likely weaken against the dollar in the months ahead, analysts said.

For the moment at least, continued refusal by the central banks of Germany and France Thursday to cut rates after November's reductions by their Group of Seven allies, the U.S., the U.K. and Canada, is supporting euro-zone currencies against the dollar, but that could change.